Retail Ventures sells stake in Value City

COLUMBUS, Ohio Retail Ventures Wednesday that has sold an 81% ownership interest in its Value City Department Stores business to VCHI Acquisition, a newly formed entity owned by VCDS Acquisition Holdings, Emerald Capital Management and Crystal Value.

Retail Ventures reported that it will receive no net cash proceeds from the sale, will pay a fee of $500,000 to the purchaser, and expects to incur an after-tax loss on the transaction.

Value City Department Stores operates 113 discount department stores in the Midwest, Mid-Atlantic and Southeastern United States and employs approximately 8,600 people.

The company reported that in connection with the sale, Retail Venture's subsidiary Filene's Basement entered into a $100 million secured credit facility with National City Business Credit. Terms of the credit facility are similar to the predecessor $275 million secured credit facility that was jointly shared with Value City Department Stores and was terminated and replaced as of the date of the transaction.

Retail Ventures continues to operate 36 Filene's Basement stores in major metropolitan areas in the Northeast and Midwest and 259 DSW stores in major metropolitan areas throughout the country. DSW also supplies shoes, under supply arrangements, to 342 locations for other non-affiliated retailers in the United States.